Agricultural Subsidies

WTO wants Agricultural Subsidies to be restricted at 10 % on agriculture. Where as Indian government provides a subsidy of 5% only on agriculture investment. Total investment by farmers per anum in India is about Rs.12.00 Lakh crores. Subsidy given by The Government is about Rs. 60,000 crore. Out of this Rs 60,000 crore Government gives Rs. 45,000 crore to Fertilizer manufacturers as input subsidy. And 85 % of these Fertilizer manufacturers are Government owned companies. 

That means Government shifts its money from one pocked to another! Next rest of the money Rs. 15,000 crore goes to FCI for storing the Rice in their godowns ! That means Farmer is charged for storing the Rice in FCI godowns which was already sold by him. Joke is that farmer sold Paddy and it is converted into Rice by Rice millers and sold it to FCI. Still Farmer is charged for storing Rice in FCI godowns.

And people believe that Farmer is not taxed. But fact is that 60% of Taxes collected from farmers  sufficient to meet the salary bill of Land Revenue department of a State. Central government does not tax farmers technically.

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Coming to subsidies to Kerosene and Diesel and Gas. This bill I think is about Rs. 40,000 crore for central government. 

Where as Central government collects about RS. 1,20,000 crore as taxes from sale of Diesel and petrol. And States collect Rs. 65,000 crore from sale of these fuels

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It is good idea to curb waste expenditure by the Government of India. But the so called Corporate leaders I think cannot suggest better ways to regulate Government finances. 


Your campaign tittle suggests that Tax is payed by mostly Corporate bodies. I don’t think People from Corporate bodies are competent to give suggestions about Government money management. It may be true that Corporate bodies pay more Tax to Central government. 

Every person pay Tax to Governments. For example, A drunkard rickshaw wala pays more tax than many IT assessees. One who drinks liquor daily costing Rs. 70/- pays the Government about Rs. 50/- as Tax. So that Government collects a tax of Rs. 15,000/- per anum from a lowly person in the society. 

There is Parliament which is responsible for control of Government expenditure Rather, we have to find ways how Parliament at Center and Legislators at States act as Guardian of Public purse.

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  • These comments are written by me on 26.3.13 in TOI on a compaign by TOI entitled,  ‘Let corporate leaders have a say in how taxpayer money is spent‘